![What people are saying about the American auto workers strike](https://i-invdn-com.investing.com/trkd-images/LYNXMPEJ8E04L_L.jpg)
©Reuters. FILE PHOTO: A United Auto Workers union member holds a sign outside the Stellantis Sterling Heights Assembly Plant to mark the start of contract negotiations in Sterling Heights, Michigan, U.S., July 12, 2023. REUTERS/Rebecca Cook/File Photo
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(Reuters) – The United Auto Workers union launched simultaneous strikes on Friday at three factories owned by General Motors (NYSE:), Ford (NYSE:) and Chrysler parent Stellantis (NYSE:), marking the most ambitious U.S. industrial labor action in the US was kicked off. decades.
The strikes will halt production of the Ford Bronco, Jeep Wrangler and Chevrolet Colorado pickup, along with other popular models.
This is what people are saying about the unprecedented strikes:
DAN IVES, ANALYST AT WEDBUSH:
“If the strike lasts longer than three to four weeks, it will be quite damaging to GM and Ford’s EV strategy in 2024…While the Detroit stalwarts battle with the UAW, a bottle of champagne is being frozen at Tesla (NASDAQ : ) Headquarters.”
SAM FIORANI, PRODUCTION FORECAST AT AUTO FORECAST SOLUTIONS:
“This is more of a symbolic strike than an actually damaging one… If negotiations don’t go in a direction that (UAW President Shawn) Fain finds positive, we can expect a larger strike within a week or two. .”
KOJI ENDO, HEAD OF EQUITY RESEARCH, SBI SECURITIES:
“It is still unknown what percentage the UAW and the Big Three will agree to, but if this results in, for example, a 15% or 20% wage increase for the UAW, Japanese manufacturers (whose employees) will not be part of the UAW . will also have to increase wages (by) about the same amount, otherwise workers in Japanese factories will disappear.”
MICHELE DE PALMA, SECRETARY GENERAL OF FIOM-CGIL, ITALY’S LARGEST METALWORKING UNION, WHICH REPRESENTS MANY STELLANTIS EMPLOYEES:
“FIOM is by your side! By fighting together we can win. Let’s fight together for a new season of rights for the working class around the world!”
LEE JAE-IL, ANALYST AT EUGENE INVESTMENT & SECURITIES:
“For South Korean automakers, the UAW strike could help increase auto prices in the United States due to production cuts, and that could create a seller’s market environment. It could also potentially help increase auto exports to the United States. production disruptions at parts suppliers supplying GM would be inevitable.”
ARTHUR WHEATON, DIRECTOR OF LABOR STUDIES AT CORNELL SCHOOL OF INDUSTRIAL AND LABOR RELATIONS:
“It is not a devastating blow to the communities. It’s not a devastating blow to the strike fund. It’s not a devastating blow to the balance sheet for any automaker, but it does start to raise the stakes, which was the intention.
“I think they’re making progress at the table… the initial offers (automakers) were much lower, like 9% (wage) increases and now you’re at 20% for increases. So that’s more than double. You’ We see the UAW fall. You don’t hear about the UAW’s 32-hour work week anymore.”
STARS:
“We are extremely disappointed by the UAW leadership’s refusal to responsibly reach a fair agreement in the best interests of our employees, their families and our customers. We immediately placed the company in emergency mode and will take all appropriate structural decisions to protect our North American operations and the company.”
DEMOCRATIC US REPRESENTATIVE ELISSA SLOTKIN OF MICHIGAN:
“I look forward to standing on the picket line with our autoworkers this weekend. For the sake of Michigan’s economy and our working families, I hope this strike is short-lived…I hope the UAW and the Big Three continue to negotiate in good faith to reach a fair agreement as quickly as possible.”
JAY TIMMONS, NATIONAL MANUFACTURERS ASSOCIATION CHAIRMAN:
“The impact of this strike will reverberate far beyond the city of Detroit, as multiple economic analyzes have shown. The small and medium-sized manufacturers across the country who are part of the automotive industry’s integrated supply chain will bear the brunt of this work stoppage, whether they are a unionized shop or not.”
MONICA BOSIO, ANALYST AT INTESA SANPAOLO:
“If extended, the shutdown of the three plants will cause significant side effects in the form of vehicle and parts shortages, ultimately potentially putting further upward pressure on final prices.”
“While at this stage the ultimate impact of the strikes on selected factories is difficult to quantify, we emphasize that of the Big Three, Stellantis is the most profitable and could benefit from a lower break-even point and on higher inventory days. GM and Ford.”
MARTINO DE AMBROGGI, ANALYST AT EQUITA:
“We confirm our view that if the strike lasts less than two weeks, it could be restored by the end of the year, while if the strike lasts longer, fourth quarter performance could be at risk.”
“The fact that it is selective, although it is starting to hit some of the group’s most profitable models, would make the economic impact less severe, but it cannot be ruled out that it could quickly expand to other factories.”